BASF strikes its largest acquisition ever

Germany-based BASF some days ago announced its largest acquisition ever: indeed, the Ludwigshafen-based group last Friday reported it had successfully completed the negotiations to acquire a significant part of Bayer’s seed business for €5.9bn–that is 15x EBITDA. The acquired asset last year generated revenues of approximately €1.3bn, with a €385m EBITDA. By carrying out this move, CEO Kurt Bock ensures BASF a key role in the seed industry, from which BASF has always been absent so far. The agreement reflects the need to reduce Bayer’s market share in the industry after the deal with Monsanto, which could be blocked by antitrust authorities if Bayer reaches a dominant market position.
(Source Börsen-Zeitung)